concerns whether or not pearl's would be able to repay it if it came due. >> i think the staff's interpretation of the continuous business operations is correct and i move that we approve. >> thank you. there is a motion. is there a second? >> i'll second. >> commission members, please announce your vote when i call your name. commissioner ellington? >> yes. >> commissioner mondejar? >> yes. >> commissioner singh? >> yes. >> chair johnson is absent. acting chair rosales? >> yes. >> madam chair, the vote is 4 ayes, one absent. >> thank you. >> good luck, everyone. >> yes. >> madam secretary, please call the next item. but i'd like to announce that i'm going to take a short break for about half an hour and i think the commission can elect

to have an interim chair. >> i propose [speaker not understood] act like a chair in your absence. >> we have to vote on that? >> well, i support it. >> okay, i think that's fair. >> do we need to call the roll on that? >> commission members, please announce your vote when i call your name. commissioner mondejar? >> yes. >> commissioner singh? >> yes. >> vice-chair rosales? >> yes. >> and then commissioner ellington. >> yes. >> i will return shortly. thank you. >> so, the vote is 4 ayes one absent. >> perfect. madam chair, please call the next item. >> item 5c, approving, consistent with the 2006 transbay streetscape and open space concept plan, and pursuant to the transbay implementation agreement, an addendum to the schematic design package for the folsom streetscape improvements project adding an east-bound separated bike lane, or cycle track, within the folsom street

roadway; transbay redevelopment project area. [speaker not understood]. madam director. >> commissioners, member of the public, thank you for continuing to join us. this next item you heard, commissioners, you considered and approved the streetscape design for folsom street last summer and as was presented as part of that presentation, as part of our effort -- as part of the city family to incorporate the latest and greatest in pedestrian safety, good bicycle planning and good overall planning for the public realm, there was the possibility of including this separated bike lane or so-called cycle track. what before you now is an addendum to that which was previously pre-viewed for you last summer.

so, with that introduction, i'd like to ask courtney pash, the assistant manager for transbay to present this item. >> good afternoon, commissioners. i'm courtney pash, the assistant project manager for the transbay project area. as you know, the folsom streetscape improvements project is an enforceable obligation pursuant to the implementation agreement. ~ for transbay. so, i'm just going to give you a little bit of background, just to get you up to speed to where we are today. in 2006 after the approval of the redevelopment plan, the agency approved a streetscape and open space plan. the concept plan identified folsom street as the boulevard with two-way circulation, wider sidewalk, and eastbound bike lane and transit service. folsom street would be the main neighborhood retail street with ground floors lining the north -- ground floor retail lining the north side of the street ~. the north sidewalk will be

widened to 25 feet wide. that will allow the ground floor retail to spill out onto the sidewalk. it will also have granite band, perpendicular to the curb and a double row of trees on the north sidewalk and new trees in the same granite bounds on the south sidewalk. folsom street will be converted to two-way and will link transbay and rincon hill neighborhoods. in furtherance of the concept design for folsom street, the commission approved the schematic design in september of last year with the caveat that we would return to you with potential separated eastbound bike lane on the south side of the street. an analysis was completed by cmd landscape architecture which concluded that an eastbound cycle track can be added to the south side of the street without affecting the curb location and sidewalk

improvements that were previously approved as part of the schematic design. we worked very closely with mta and the planning department and dpw to come up with a scheme that both fit in with the greater transbay area and neighboring area bike plans. it will connect to the north, south cycle track on 2nd street, the future bike path through under ramp park up to the transbay transit center. it will be coupled with a westbound bike lane on howard street and other north-south bike path along the other streets going from second to the embarcadaro. as you can see here. we looked at other cycle tracks that have been implemented throughout the city. as you can see here, here are

some examples and things that we looked at. so, here's a sample, a sample block. the cycle track will run the entire length from second to the embarcadaro on the south side of the street, will be treated a little bit differently on essex street because that's a main bay bridge access point. at each of the intersections, though, there will be separate signals to try to limit, limit the bike, vehicle -- any potential bike-vehicle conflicts. the cycle track as it is developed and as you can see here will be at street with a buffer zone between the cycle track itself and the adjacent parallel parked cars. the parked cars will act as a vertical barrier between the

bicycles and the vehicle traffic. this cycle track differs from the approved schematic designs only in the elimination of a westbound vehicle lane. so, we took out one of the lanes, widened the remaining three lanes a little bit and added this cycle track on the south side of the street. so, you can see here that the cycle track, the green painted area will range from 5-1/2 to 8 feet. there will be a 2 to 5-foot buffer strip for the parked cars that open their doors and whatnot. and then there will be the three travel lanes and parking on the north side of the street. we also have looked at the potential for adding a dedicated westbound cycle track. however, that has not gone

through the full mta/dpw review process. so -- and it could result in some potential conflicts with the existing transit service from the temporary terminal. so, we're looking at the possibility that this project right now just approving the one way cycle track which will be coupled with the howard street bike lane. but it does allow for a bike by doing this at grade and how we've set up this one way cycle track, it allows for the future development of a two way of a westbound cycle track on the north side of the street. we are planning to submit the full design development documents to dpw, mta planning for all the other city agencies to review in the summer of this year. we'll also be coming back to you with an amendment to the

previously approved contract with dpw to continue managing this process from a design approval perspective and a construction administration perspective. it will take us about a year after that to develop the full set of construction drawings and then we anticipate beginning construction in the summer of 2015. and at that time we'll come back to you with authorization for funding and approval. as i leave this slide up here, i believe you got an info memo on the participation for this. this project also -- it couple together since it's one contract the folsom street improvements and under ramp park. so, i'm happy to answer any questions. thank you. >> awesome. do we have any speaker cards? >> i have no speaker cards. >> commissioners, i'm going to open up to you guys.

>> i saw everything. it looks very pretty. it looks very good. >> yeah. >> i like that. >> awesome. i have a couple questions, just a couple clarity questions here. we've seen this in the past and i guess i was wondering -- i think it we asked this last time. there was a lot of construction going on in this area ~. i know you just showed us the timeline, but are you guys working with kind of the other major construction projects that are going on in the area? it just seems like it's just a big mess down there sometimes, but if you can just talk -- speak on that for a bit. >> of course, of course. so, this project which will start next summer will redo the south sidewalk. so, aside from the lululemon na project which i believe is between beale and spears, ~ those are mostly older buildings. >> gotcha. >> [speaker not understood]. the northern, the northern side

of folsom street, what we're doing now is setting the curb line and we'll build the curb and temporary improvements. if it doesn't coincide with the construction of the major development on the north side of the street, the developers of each of those projects, those are our development blocks, block 6, 8, and 9 will build out those improvements. so, the double row of trees, et cetera. but this project is responsible for getting the curb lines and then the roadway, repaving the roadway, and this will be part of that project. >> got it. and is this consistent with the park that's under -- >> the underground park? >> yes. >> no, the underground park is going to follow about a year or two later because that has to be constructed at the same time or after the bus ramp that carries the buses from the bay bridge to the transit center. it's going to run over the park. >> gotcha. and sorry, last question here. i'm kind of bouncing all over the place.

you said that this starts on 2nd street and ends on the embarcadaro? >> yes. >> so, what -- how does this kind of fit in the overall scope of the rest of kind of market and the rest of folsom? are we just -- folks have to cut through there? i'm confused about where we start and finish. >> yeah, we've been working very closely with the planning department and their team who is working on the central soma e-i-r which is analyzing folsom street, basically including our project all the way out to 11th, i believe. so, it's, it's, you know, that's part of the reason why we're allowing for a -- we wanted to allow for a potential westbound cycle track in the future. if that portion of folsom street shifts to two-way, that would be kind of a great connector. but as it is, they've redone the striping just within the last few months along folsom street -- second or fourth? to 11th. so, it would be a connection

through this area all the way to embarcadaro. >> gotcha, okay. commissioner singh. >> it looks very, very good. >> thank you. >> yeah, but sidewalk is going to be 25 feet? >> on the north side of the street. >> yeah, but what about the traffic? >> so, so, the north sidewalk is going to be 25 feet. it's 10 feet is about what it is now, and then the extra 15 feet is from a setback that the developers are required as part of their development requirement. so, they setback their building 15 feet and that's how we get the 25 for the sidewalk on the north side of the street. >> the commute hours in the morning, it's going to be very covered there, you know. >> you know, we've been working with the traffic -- both the mta and the traffic planner at the planning department. and actually this portion, once you get east of essex street, it's much less heavily traveled

than west of essex street because people are getting onto the bay bridge from the other -- other side of the city. and from essex to the embarcadaro, it's much less traveled. it's mostly -- right now it's mostly the -- you know, it's heavily traveled by the buses going to the temporary terminal. as you know it will be relocated in 2018. >> sorry, last question. >> sure. >> so, the -- where will the bus stop, natural bus stops be in comparison to the sidewalk traffic? there will be no buses he? >> there are no bus stops on folsom street right now. >> got it. all right. >> i have a question. so, you've consulted obviously the neighborhood around that, because like i live around that area and i don't go to folsom in the rush hours because you can barely drive through. so, and yet at the same time there are also buildings around there. and you've consulted all the

neighbors and the community and all of these -- and they're signing off on this? >> yes, yes. i mean, the transit center, the [speaker not understood] plan, the transit district plan all went through the full community process. this was approved by our cac unanimously at its -- at the january 9th, 2014 meeting. so, you know, as far as the community goes and them representing -- >> 2009? >> '14. >> 2014. >> just a couple months ago they approved this, this cycle track. >> who is paying for all of this? >> we will be paying, we will be paying. >> you're paying for all of this? >> yes. >> the source of funds, ms. pash, correct me, is existing tax exempt bond proceeds, new requests of property tax through this process, the state has imposed on us the sixth month ask for the property tax called the robser, recognize payment schedule, developer --

developer fees, other -- we have a zero call. there are agreements with the transbay joint powers authority where every single new propertied tax dollar in this district, in zone 1 which the commission has purview, all-new property tax goes to the joint powers authority for the transit center construction. all land sales, all these rfps that we're issuing, again, goes to the transit center for construction. but in the broader district, i think commissioner ellington and other commissioners point out, there is a lot of activity in construction existing in new buildings. there's new property tax that's generated from all those high-rises and cranes going on. so, we're able to, again, through our agreement with the tjpa draw on new property tax and hopefully issue new tax increment bonds to the extent we go through a very rigorous process through the state, not just locally, where in those new areas it's called zone 2.

it's covered by the transit center district plan. all the high-rises, the new property tax he he. you'll see that in a more in-depth presentation staff will be presenting as part of your april 1st budget. the [speaker not understood] and uses of all that. but this is all flowing from the commission's work and the authorization. s. >> and how much is this costing us? ~ do we have -- >> the total scope of public improvements in the district, the total scope of streetscape improvements, is that your question, commissioner mondejar? are you talking about folsom street? >> yes, an idea of how much this is going to cost us. >> yes, the folsom street project, we have an estimate of about $15 million. ~ right now. >> if there's no more commissioner questions or comments, i would like to remind you guys that it is an action item and i would entertain a motion.

>> [speaker not understood]. >> there was no public comment. i think i asked that. >> i move that. >> so the motion from commissioner singh. >> second. >> second from commissioner mondejar. madam secretary, can you please do a roll call on this item. >> commission members, please announce your vote when i call your name. commissioner mondejar? >> yes. >> commissioner singh? >> yes. >> vice-chair rosales is absent. chair johnson is absent. acting chair ellington? >> yes. >> the vote is 3 ayes, two absent. >> may you please call the next item. >> the next item is 5d, authorizing a first amendment to the amended and restated ocii loan agreement with bayview supportive housing, llc, a california limited liability company, to reduce the interest rate from 3% to 1.46% and clarify the distribution of surplus cash, for the development of 120 very low-income senior rental housing units plus one manager's unit at 1751 carroll avenue (formerly known as 5800 third street, lot 3) (assessor's block 5431a, lot 042).

discussion and action, resolution number 15-2014. madam director. >> commissioners, as you recall, 1500 third street or now owe officially known as dr. davis senior center, and a number of you, commissioner ellington, attended the groundbreaking. the commission in this particular action last fall approved an approximate $19 million loan to provide gap financing for this development. it really was a culmination of a series of actions of the former redevelopment agency acquiring land in order to aggregate it. then this commission stepping in, redevelopment dissolution, saving $20 million, $19 million from governor brown in the word

of senator mark leno, saving that from the governor balancing his budget. the item before you is really quite narrow. as you'll hear from staff, these are technical clarifications that happen as we approach project closing that tax credit investors and others have brought forth. so, we're pleased to bring this item for your consideration. so, with that i'd like to ask pam simms, development specialist to present this item. thanks. >> thank you, director bohe. good afternoon, acting chair ellington. >> thank you. >> commissioners. again, i am pam simms. i am a development specialist in the ocii office and i'm here today to present on item d, which are minor revisions or technical clarifications to the loan agreement for the project located at 17 51 carroll avenue. ~ as you remember or might remember, the project consists of 121 affordable senior units and a 13,000 square foot senior center.

as you may remember, you last considered this development in september where the commission authorized executive director to enter into an amended and restated loan agreement in an amount not to exceed $16 million in oti funding for an aggregate loan amount of 19.1 million. at that time you also approved a term of 55 years at an interest rate of 3% for the loan. since the project was approved by the commission in september, the developer has been working with city staff to satisfy various issues raised by the investor and the tax attorney. an issue raised by the tax attorney is a true debt tax which is analysis of the cash flow from the project that shows an ability for the project to repay the loan by year '35 5. the annual rent combined with the 3% interest rate will prohibit the project's ability to [speaker not understood] debt tax. therefore, i'm here before you today to ask for a reduction in the interest rate from 3% to

1.46%, which is just low enough to demonstrate repayment in year 55. the city's financial advisor reviewed the numbers and the requested interest rate ~ is determined that -- has determined that the 1.46% interest rate to be reasonable and not excessively low. this reduction in interest rate won't create any significant negative impact to the ocii loan and it won't change the nature of the enforceable obligation. additionally, the investor and tax attorney have requested that the terms regarding the distribution of surplus cash in the loan agreement are consistent with the ground lease. which has one-third of the surplus cash paid to the developer up to $50,000 and two-thirds paid to the city to pay down the ocii and [speaker not understood] cd loans. all of these technical clarifications are consistent with the city's underwriting

guidelines and with 'your approval today, staff anticipates bond closing and construction in april. and that concludes my presentation. thank you. >> madam secretary, do we have any speaker cards on this item? >> i have no speaker cards. >> alrighty, i'm going to open it up to commissioners here for questions and comments. no questions? >> i move that. >> okay. i do have just a couple questions here. i guess the first is is this -- i was curious to know if this was typical of -- i guess we're in this case a lending institution or a lending entity to lower interest rates after things have been signed and agreed upon. >> yes. actually, thank you, commissioner ellington. actually it's very common. and when we were a part of the redevelopment agency, it was

very typical to come back to commission to request a reduction in the interest rate and/or the term of the loan. and in those instances, then, the tax attorney could get comfortable with the project's ability to repay the debt. so, yes, it is typical. >> and then i looked at the spreadsheet that you guys provided in the memo and -- >> teeny-tiny -- >> that's fine. i was not able to understand the repayment process. >> um-hm. >> and where our agency fit compared to the other investors. so, are we -- where are we in line with the -- who gets repaid first and how does the surplus cash go into that? >> okay. so, there is the tenant rent and then -- and the cash flow really lays it out. >> yeah. >> and there is operating expenses and then there's debt service. >> yeah. >> so, the conventional lenders are all paid above the line in the debt service category.

and then below the line is where the developer gets their one-third and then we get the two-thirds of the cash flow to pay down the loan. >> i see, gotcha. and then we are transferring this to the mayor's office of housing? >> ultimately, after construction is completed. >> gotcha. >> um-hm. >> you know, i would just like -- i don't know if -- this seems like a pretty significant request and i would appreciate if -- is there anybody from -- >> the developer is here. >> got it, there we go. >> developer is here to answer any questions you may have. >> new york city i just wanted to make sure that you were here and someone from the development team was present. ~ no, i just wanted so, i do believe we have a motion on the table here. do we have a second? >> second. >> madam secretary, please take roll. >> commission members, please announce your vote when i call your name.

commissioner mondejar? >> yes. >> exemption? >> yes. >> vice-chair rosales is absent. commissioner johnson is absent. acting chair ellington? >> yes. >> the vote is three ayes and two absent. >> awesome. so, i do see that [speaker not understood] is not back yet. we did get through that a lot quicker than expected. so, i would suggest with the permission of the commissioners to take a short recess until commissioner rosales is not back ~. >> [speaker not understood]. >> so, i will -- okay, let's do that. we are going to take public comment. we're going to move that forward in anticipation of commissioner rosales' return. >> the next item of business is item 6, public comment on non-agenda items. i have one speaker, dianne [speaker not understood]. yes, thank you so much, commissioners. ~ for hearing me before you go

on break. i am here, i'm going to read something to you about property management. you already are aware of it, but this is part of my public comment, my three minutes. property management is the operation control and oversight of real estate as used in its most broad terms. management indicates a need to be carefully monitored and accountability given for its useful life and condition. property management is also the management of personal property, equipment, tooling and physical capital assets that are required and used to build and maintain in item deliverables. in this case property. property management involves the process, real property, i should say, involves the process assistance and manpower required to manage the life cycle of all acquired property. i am stating that because we're doing a lot of building. i say we because i'm a native san franciscan and you represent me as well ~. in california, unless one is an

employee, a third-party property manager must be licensed with the california department of real estate and be a real estate broker, which i am. i also own my own business which is called aaa bayview real estate and community services. the reason i'm here today is because there are so many facets to the profession and i'm also a certified property manager. but i'm here because i need your assistance to navigate my inclusion as a property manager. a lot of the developers that come in have already decided who is going to manage the property. i have been involved in real estate since 2003 and, so, i need your help. and what i'm asking is inclusion -- i am a small business enterprise. i am a lbe enterprise, and i'm also obviously a black business owner, a minority business owner.

we, as part of the dda, which have done some great things about helping residents increase their financial situation, to improve their quality of life. i do come under that purview. and, so, i'm going to conclude my presentation with just saying that as a -- also as a homeowner, a voter, that i need the assistance of your committee. i am qualified. i mentioned to you that i'm certified, and i would look forward to someone reaching out to me in the near future because preparation is everything. thank you so much for your time. i do have my contact information is dianne smith. and it's bbhp realtors for bayview hunters point at comcast.net. and you can find my phone number. thank you so much for your time. i look forward to hearing from someone. >> thank you so much.

madam secretary, are there any more speaker cards? >> no other cards. >> seeing that there's no other public comment, i want to close public comment at this time. and i believe we will go into short recess and we will resume when commissioner rosales returns. >>please stand by; meeting in recess >> are we recording? >> just a moment. >> here we gi want to go ahead and reconvene and call the meet tog order at 2:29, commission on community investment and infrastructure. and i see that vice-chair morales is back -- rosales, sorry. looking here and talking here. >> you did very well. thank you. >> he's doing better than anybody. [laughter] >> carry on.